Technical Stock Screen Using Rising Lows, Amplitude, Volume, and a Gap-Up

Summary

This note describes a Chinese stock screen that combines price and volume conditions. It seeks shares with amplitude above 1, a rising price bottom, current trading volume above 10,000 lots, and an opening price more than 3 percent above the previous close. The supplied formula and partial Python example illustrate ways to express these filters. The note’s explanation treats them as signs of active trading and improving price behavior, while acknowledging that the conditions are tailored and may be uncertain.

The document gives no backtest, candidate list, or performance evidence showing that the screen predicts returns. It warns that short-term price swings are sensitive to sentiment, a gap-up does not ensure continued gains, and high volume can reflect selling as well as buying. It proposes adding technical and fundamental indicators and considering macroeconomic or policy context, though those proposed additions are not specified as a tested model. The screen is therefore a set of exploratory filters, with definitions such as rising lows requiring care in implementation.

Key ideas

• The screen combines amplitude, rising lows, current volume, and an opening gap above the previous close.
• The examples translate these conditions into formula and Python screening logic.
• A high opening price and large volume do not by themselves establish favorable future performance.
• The note provides no backtest or quantified results for the proposed rules.
• It identifies market sentiment and business quality as relevant risks the filters do not capture.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.